Obama's Stimulus Plan - Is this actually correct?
I recently saw this article (copy and pasted below) which I think came from this site: http://obamasstimuluspackage.net But what I'm wondering is, 1. Is it actually right? And also, what about the $8,000 tax credit? How does that part work with this?
"Here are the key features of the Stimulus Package:
- In the past, if your home equity was under 20% you could not apply for a loan modification. Under the new Package, these homeowners will qualify for loan modification. Loans with Freddie Mac or Fannie Mae are eligible for loan modification.
- The new monthly mortgage payments will not exceed 31% of your gross monthly income.
- If you currently have an adjustable rate mortgage, you can modify your loan to be a fixed rate mortgage. With the steady drop in interest rates from 6.5% to 5.16%, this can add significant monthly savings for the homeowner.
- Finally, the mortgage terms can be extended by 20-30 years further reducing your monthly payments through a reduction in your mortgage rate."
Thanks for the advice you can give...I'm kind of on a tight deadline if you know what I mean.